An Australian property developer is seizing the opportunity to build high rise apartments and townhouses in Adelaide after the South Australian government reformed its planning laws in 2013. Starfish Developments Managing Director Damon Nagel told The Real Estate Conversation the company will tomorrow officially announce its third Adelaide project, a development of 300 townhouses approximately 10 kilometres from the Adelaide CBD.

Nagel said high rise projects are now assessed by a Development Assessment Commission rather than council, allowing for greater heights and a more streamlined process for developers. In December, the group received approval for its $110 million Bohem project, a 220 apartment, 21 storey complex that will be 76 metres high. Bohem is located on the corner of Wright and Morphett Streets and will overlook Whitmore Square. Nagel said the site had previously housed a petrol station that was decommissioned in 1996, and had sat vacant ever since. Once complete, Bohem will be the third tallest residential building in South Australia.

Bohem will feature a 22 metre vertical garden creating a bold façade. "We wanted to blur the lines between the park and the building," said Nagel. "We will have 3000 plants scattered all over the building, and it will be Adelaide's greenest building by a mile. It will actually change color throughout the year." It has been designed by Enzo Caroscio Architecture and Woods Bagot with Tract appointed as the landscape architects.

Sales at Bohem have just launched, with 72 of the project’s 220 apartments now sold. Prices start at $339,000 for a one bedroom apartment, $460,000 for two bedrooms and $1,200,000 for three bedrooms. The project will feature three penthouses priced from $1.5 million to $2.2 million. Nagel said the project was not being marketed internationally as there was enough interest locally. "We think a building is better if there are owner-occupiers, and we have 50 percent owner-occupiers which is pretty good for Adelaide," he said. About 12 percent of buyers were non-South Australian residents.

Last year, Starfish Developments had success with their joint venture in the $100 million Vue on King William, Adelaide CBD’s tallest residential building which is now fully sold, and under construction. Starfish Developments, which currently has $370 million worth of projects in varying stages of planning and construction, both in South Australia and Western Australia, is building apartments in Adelaide at a time when the city population is increasing. The latest population forecast shows the city’s population is set to grow this year to a 23,065, a 50 year high. The city last had a population this size in 1965, and its peak population was 100 years ago when it reached 43,133 in 1915.

"While Adelaide apartment selling traditionally is pretty mixed, I think if you're building a product that is pretty unique and well priced, it will sell," said Nagel.